Why are BOD margins considered on trading platforms instead of latest SPAN margins?

[nithin]

@Chandra_Reddy1

I still see margin getting updated during trading hours for positions existing already. If span files are not updated during the day, how is the margin required changing?

Margins also change based on if positions are in profit/loss. So even if a new SPAN file isn’t updated and if you are holding positions, the margins can go up and down based on the market movement.

Check this

There is a change in F&O Margin Policy again? Can somebody explain how this will affect us?

SPAN margins are charged to cover for the worst possible movement in the contract you are trading for a single day. The exchange has now revised this to cover for possible volatility over 2 days. SPAN margins are charged by calculating the Price Scan Range of the index or the stock. Price Scan Range(PSR) is the worst possible movement in a scrip in a day. PSR is calculated using the daily volatility of the scrip. It is 3 sigma of the daily volatility for index contracts and 3.5 sigma for stocks…